|
Become a Government Approved FHA
Broker
lenderlicense.com
The FHA continues to show
strong demand even as much of the mortgage marketplace is in disarray.
For the fiscal year which
ended September 30th, HUD reports that it received 768,770 FHA applications
under the Single Family Programs. Of this total, 60,081 applications covered
proposed construction and 708,689 existing home transactions.
From this application volume,
FHA endorsed 424,779 forward mortgages and 107,558 reverse mortgages (HECMs) for
a total of 532,337 loans for the year.
Of the 532,337 mortgages
insured during this fiscal year, 278,422 were for purchase money mortgages,
146,357 refinances and 107,558 HECM’s. Eighty percent of the purchase money
mortgages were insured for first-time home owners and of these, 31.2 percent of
the home owners were from minority families. The remaining were white
households. Only 4.2 percent of the home buyers refused to disclose their race
or ethnicity.
With respect to refinanced
deals, only a small portion of the cases could use the streamlined procedures,
since most transaction required appraisals. The bulk of these cases required
full underwriting because of the major shift in business especially in cash-out
activity — a significant number transferring from a conventional transaction to
FHA. This is partially due to change in FHA regulations which permitted
loan-value ratios of 95 percent — up from the prior limit of 85 79 percent —
changed in October 2005.
FY 2007 was a year of shifting
business. Purchase transactions were off 11.3 percent and first timer mortgages
were down 12 percent. However, the refinancing sector was much more active — a
further breakdown shows that streamlined processing was down 39.3 percent while
full processing was up 65.4 percent. This is due to the shift in the source of
refinancing.
This entry was posted on
Thursday, October 18th, 2007 at 11:19 am and is filed under
FHA Mortgage,
FHASecure. You can follow any responses to this entry through the
RSS 2.0 feed. You can
leave a response or
trackback from your own site.
Related FHA Stories
lenderlicense.com
|